Base metals on the London Metal Exchange were collectively lower during morning trading on Thursday October 11, pressured by a sharp sell-off in global equity markets while investors remain broadly risk-averse toward commodity investment.
The losses have stemmed from a statement issued by the International Monetary Fund (IMF) on Thursday indicating excessive stock markets valuations, while trade uncertainties will continue to drive economic uncertainty, the IMF added. "Stock markets saw a sell-off yesterday that points to significantly increased risk aversion among market participants; as a result, cyclical commodities such as energy sources and base metals find themselves under pressure this morning," Commerzbank Research said in a morning note. "While US President Trump on Twitter has blamed the US Fed and its interest rate policy for the sell-off, we believe that steep bond yield rises are a more plausible...